Home Loan EMI Calculator

Understanding the result

Home loans run for decades, so interest often adds up to as much as the amount borrowed, or more. The chart shows that split at a glance; the schedule shows how slowly the balance falls in the early years.

Because interest is charged on the outstanding balance, paying down principal early — through a shorter tenure or prepayments — saves far more interest than the same amount paid late. Move a one-time prepayment to a later EMI to see the saving shrink.

The tax table shows why the early years matter for tax too: then interest is large and passes the ₹ 2,00,000 limit, while principal is small. As the loan runs, interest falls under the limit and principal rises to fill its ₹ 1,50,000.

How to use it

• Property value — the price of the home, without stamp duty and registration, which banks leave out of the value they lend against. It opens at ₹ 62,50,000.
• Down payment — what you pay yourself, in rupees (₹) or as a percentage of the value (%). It opens at 20%, a loan of ₹ 50,00,000; switching the unit keeps the amount. Under the field are the other form and the loan you borrow. A down payment always leaves at least ₹ 1,000 to borrow. When the loan is more of the value than banks may lend, a note under it says how much they may.
• Annual interest rate — the yearly rate your lender quotes on a reducing balance, from 0.1% to 50%.
• Loan tenure — in years (1 to 50) or months (1 to 600). Switching the unit keeps the length: 10 years becomes 120 months, and months round to the nearest year.
• First EMI — the month and year of EMI no. 1. It opens on next month, and dates the schedule.

The results beside these show the monthly EMI, the total interest and the total you repay, and the loan amount, with a chart of principal against interest. Add prepayments opens one extra payment and shows what it changes.

• How often — monthly, yearly or one-time. It opens on yearly.
• Prepayment — the extra amount, paid on top of the EMI. It opens at ₹ 1,00,000; an empty field prepays nothing.
• From EMI no. — the EMI the first prepayment is paid with, as numbered in the # column of the schedule; later ones follow every month or every 12 months. For a one-time prepayment the field reads At EMI no. It opens at 12, the twelfth EMI, and the month that EMI falls in shows below it.
• After a prepayment — Reduce tenure keeps the EMI and ends the loan sooner; Reduce EMI keeps the tenure and lowers the EMI.

For a loan already running, enter the balance still owed and the tenure left, so EMI no. 1 is your next EMI.

Beside the prepayment the tool shows the interest saved, when the loan is paid off or what the EMI falls to, the total prepaid and the total interest with prepayments. The amortization schedule lists every month's date, opening balance, EMI, extra payment, interest, principal and closing balance, with the months of a prepayment highlighted. Yearly sums it into years: the EMIs paid, extra payments, interest and principal of each year, and its closing balance. Loan Year counts twelve months from the first EMI, Calendar runs January to December and Financial runs April to March, the year income-tax claims follow. A first or last year shorter than twelve months shows how many it covers. Export CSV downloads the view shown.

Tax deductions opens the tax fields, the tax saved beside them and a table of it by tax year.

• Your share of the loan — for a co-owner with a definite share of the home who is also a co-borrower paying that share, 1% to 100%. Interest and principal are taken at that share, and each co-owner has the full limits. It opens at 100%.
• Other 80C / s.123 investments — PF, PPF, life insurance and other payments in the same ₹ 1,50,000 limit as principal, a year. They use the limit first, so principal gets what is left.
• Taxable income (old regime) — your total income a year after every other deduction, before home-loan interest and principal, up to ₹ 50,00,000. It opens at ₹ 15,00,000.
• Age — below 60, 60 to 79 or 80 or over, at any time in the tax year.

Beside the fields are the tax saved in the first tax year with all twelve EMIs, the total over the loan's tax years if your income and the rates stay as they are, and the interest above the ₹ 2,00,000 limit, which is not deductible on a home you live in.

The table has a row for each tax year (April to March) from 2026-27, whatever grouping the schedule shows: the interest due with that year's EMIs, the part of it you can deduct, the principal repaid with prepayments, the part of that you can deduct, and the tax saved, with a total row. A first or last year shorter than twelve months shows how many it covers. Every year uses the income and age you enter. Tax years before 2026-27 fall under the Income-tax Act, 1961 and are left out.

How the EMI is calculated

Interest is charged each month on the balance still owed, so early EMIs are mostly interest and later ones mostly principal. The EMI stays the same throughout, which is why the schedule shows the interest part shrinking month by month.

A prepayment is counted with that month's EMI: it comes off the month's closing balance, and interest is lower from the next month. Under Reduce tenure the EMI stays and the last instalment is whatever clears the balance. Under Reduce EMI the EMI is worked out again after each prepayment, on the balance left over the months left. A prepayment larger than the balance is cut to the balance and closes the loan.

The EMI is rounded to the nearest rupee. Total interest and total payment use the exact EMI, so they can differ by a few rupees from adding up the rounded monthly figures.

Interest is charged in whole months. When a loan is paid out partway through a month, lenders charge interest for the extra days separately (broken-period interest); that is not included.

Tax saved for a year is the old-regime tax on your income less the tax on your income after the year's deductions. Each income is rounded to the nearest ₹10, taxed at the slab rates for your age, less the rebate where it applies, plus 4% cess, and the tax is rounded to ₹10. A year's interest is the interest due with the EMIs of April to March, as a lender's interest certificate gives it. The limits are not cut for a first or last year shorter than twelve months.

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

P = loan amount, r = annual rate ÷ 12 ÷ 100, n = tenure in months

Interest saved = total interest with no prepayments − total interest with them

Tax saved = tax on income − tax on (income − interest deductible − principal deductible)

Examples

Home loan EMIs over 20 years

Tax, lending and prepayment rules

From tax year 2026-27, the Income-tax Act, 2025 lets you deduct the interest payable on a loan taken to buy or build a home (section 22(1)(b)). For a home you live in, the deduction is at most ₹ 2,00,000 a tax year when the home was bought or built with the loan, the purchase or construction was completed within five years from the end of the tax year of borrowing, and you have your lender's interest certificate (section 22(2)(a)); otherwise it is at most ₹30,000. The ₹ 2,00,000 limit is one limit across every home you live in (section 22(5)).

Principal repaid to the government, a bank, LIC, the National Housing Bank, a housing finance company or certain employers counts toward the ₹ 1,50,000 a tax year of section 123, shared with PF, PPF, life insurance and the other payments of Schedule XV (paragraphs 1(r) and 3(a)(iii)). Stamp duty and registration count too, in the year you pay them (paragraph 3(a)(iv)). If you transfer the home within five years from the end of the tax year you got possession, the principal deductions you took are taxed as income that year (paragraph 4, Table item 3).

Co-owners with definite shares are taxed separately on their shares, and each has the relief for a home they live in (section 24). The default new regime allows neither deduction for a home you live in (section 202(2)(a)(v) and (xii)): the tool works under the old regime.

The Finance Act, 2026 sets the old-regime rates for tax year 2026-27 (section 3(1), First Schedule Part I-B Paragraph A): nil up to ₹2,50,000, 5% to ₹5,00,000, 20% to ₹10,00,000 and 30% above. For a resident aged 60 to 79 nothing is due up to ₹3,00,000; aged 80 or over, nothing up to ₹5,00,000 and 20% to ₹10,00,000. Health and Education Cess adds 4% (section 3(15)). A resident with total income up to ₹ 5,00,000 gets a rebate of the tax, up to ₹ 12,500 (section 156(1)), and income and tax are rounded to the nearest ₹10 (section 516). Surcharge starts above ₹ 50,00,000, which the tool does not cover.

A bank may lend at most 90% of a home's value on a loan up to ₹30 lakh, 80% above ₹30 lakh up to ₹75 lakh and 75% above ₹75 lakh (RBI Credit Facilities Directions, paragraph 111). The value leaves out stamp duty, registration and documentation charges, except that for a home costing ₹ 10,00,000 or less the bank may add them (paragraph 113). Housing finance companies are regulated separately.

The interest saved is shown before any charge your lender makes for prepaying. Ask your lender whether a part-payment shortens the tenure or lowers the EMI; the tool shows both.

For loans sanctioned or renewed on or after 1 January 2026, the Reserve Bank of India bars banks, co-operative banks and NBFCs from charging for the prepayment of a floating-rate loan given to an individual for a purpose other than business. That holds for a part or a full prepayment, from any source of funds, with no minimum lock-in period.

On other loans, a fixed-rate loan among them, a charge follows the lender's own policy and is based on the amount prepaid. It applies only if the sanction letter and loan agreement state it.

Sources

• Income-tax Act, 2025, as amended to 29 May 2026: sections 21, 22, 24, 123, 156, 202 and 516, and Schedule XV — Income Tax Department
• The Finance Act, 2026 (No. 4 of 2026): section 3(1) and (15), First Schedule Part I-B Paragraph A — Gazette of India, Ministry of Law and Justice
• Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025 (RBI/DOR/2025-26/154), paragraphs 111 and 113 — Reserve Bank of India
• Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 (RBI/2025-26/64) — Reserve Bank of India

Reviewed 15 October 2026

Frequently asked questions

See also

• EMI Calculator — for any other loan, with the same prepayment options.